Rural women play a significant role in the domestic and socio-economic life of the society. Micro finance is recognized as a key strategy for addressing issue of poverty alleviation and women’s empowerment. Access to financial services and the subsequent transfer of financial resources to poor women enable them to become economic agents of change. Women become economically self-reliant, contribute directly to the well being of their families, play a more active role in decision making and are able to confront systematic gender inequalities. This paper puts forward how micro finance has received extensive recognition as a strategy for economic empowerment of women. This paper seeks to examine the impact of Micro finance with respect to poverty alleviation and socioeconomic empowerment of rural women in Bundelkhand region of jhansi. An effort is also made to suggest the ways to increase women empowerment. Micro- finance programmes not only give women and men access to savings and credit, but reach millions of people worldwide bringing them together regularly in organized groups.